In carrying out the scheme, Kontogiannis bought up land in Brooklyn and Queens from 2001 to 2003, subdivided the properties and obtained bogus appraisals to use on loan applications, according to prosecutors.

Kontogiannis then allegedly recruited straw buyers, including relatives and an architect and engineer who worked on the projects, to take out multiple loans on the same parcels through mortgage and title companies that he controlled.

The loans were then sold to WAMU and DLJ.

The banks were left holding the bag on a whopping $92 million balance when payments on the mortgages stopped in 2007 – the same year Kontogiannis pleaded guilty to laundering bribes for former California Congressman Randy “Duke” Cunningham.

Kontagiannis is serving an eight-year sentence for helping to finance the purchase of Cunningham’s $2.5 million house in Rancho Santa Fe – a deal intended to cover up bribes by two military contractors.

A lawyer for Kontogiannis declined comment.

The shady real estate developer is expected to appear in Brooklyn to face bank fraud and money laundering charges as soon as next week.

Among those arrested today are Kontogiannis’ son-in-law, Elias Apergis, 32, a construction company president, and his nephew, John Michael, 38, who ran a mortgage company called Coastal Capital.